Tax measure passed through Parliament
The Tax and Superannuation Laws Amendment (2015 Measures No. 1) Bill 2015 has passed through Parliament in hopes to increase Australia's economic competitiveness, provide greater tax certainty, and restore the Budget.
The Bill, passed on Friday, modernises the Offshore Banking Unit (OBU) regime to include some mobile financial activities such as trading in commodities, leasing, and entering into securities lending and repurchase agreements.
It will now also exclude trading in shares in a foreign subsidiary of an Australian bank and ensures internal financial dealings are treated on an arm's length basis.
The Bill has also made changes to the Investment Manager Regime (IMR) to encourage greater levels of foreign investment by attracting increased foreign capital, driving economic growth, and creating jobs.
The Bill's passage assures key budget repair measures of more than $450 million over the forward estimates through abolishing the First Home Save Account Scheme, and the Dependent Spouse Tax Offset.
Development of the Global Infrastructure Hub, an achievement from Australia's G20 Presidency in 2014, will be assisted by the Bill. It will ensure contributions to the Hub from a number of sources, including other governments, will not be treated as assessable income, and subject to income tax.
The Bill acts on recommendations of the 2009 Australia as a Financial Centre Report, also known as the Johnson Report.
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